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Consider the Albert Hanson Company problem The production facility constraint indicated that the total number of units produced of the two products combined cannot exceed ten per hour. The constraint was derived from an on-site storage constraint that it is not possible to produce more of either good unless there are less than 10 units in the production facility. The general procedure is that the finished products is moved to an off-site storage facility, but the shipping method is not reliable. As such it is possible for the production constraint to be more or less than 10 units depending on how much x1 and x2 have been moved to storage. Also note that partial units are possible.
a) Complete a Monte Carlo simulation of production if the production facility constraint is distributed
C ~ N(10, 2). What is the impact on profitability and the production levels of x1 and x2?
b) What is the mean and standard deviation of the dual value on the production facility constraint?
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